24th Sep 2013 08:34
LONDON (Alliance News) - CVS Group PLC, the veterinary services provider, Tuesday reported higher revenues and a 45% increase in its full-year profits, boosted by a large number of acquisitions.
CVS increased its final dividend by 33% to 2.0 pence per share, citing a strong pipeline of acquisitions as the key driver of future profitability.
It said that it acquired and integrated 14 surgeries during the year, as well as its second pet crematorium, for a total investment spend of GBP7.7 million. It said that is now has a total of 252 veterinary surgeries.
CVS said that it signed an additional GBP10 million borrowing facility on September 20, in order to finance further acquisitions, without putting too much pressure on its balance sheet.
The group reported a 10% increase in revenues for the financial year ended June 30, to GBP120.1 million, compared with GBP108.7 million a year earlier. It said that like-for-like sales were up 3.4%, driven by a 70% increase in its healthy pet club members, to 111,900.
CVS said revenue from its online retail platform Animed Direct, were up 62% on the prior year, to GBP4.9 million, and has begun to make initial sales into Europe.
Pretax profit rose 45% to GBP5.5 million, compared with GBP3.8 million a year earlier, despite higher acquisition and amortisation costs.
CVS Group shares were up trading at 244.00 pence per share Tuesday morning, up 1.7% or 4.00p.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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